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SThree's first quarter gross profit rises on contract recruitment

Specialist staffing business SThree said first quarter gross profit climbed nine per cent, driven by an increase in its contract employment placements.

An 18% increase in contract gross profit offset a 4% drop in permanent staffing recruitment. Contract now accounts for 61% of total gross profit.

The company achieved a strong performance in the Americas, up 49% year-on-year, representing 13% of gross profit.

"While, as always, we remain cautious about extrapolating the trend for the year from the quieter first quarter, the strength of our contract book and improving outlook for permanent give us confidence for the year ahead."

Net debt at the end of the period, after payment of an interim dividend of £5.7m, was £8m. SThree has a £20m revolving credit facility with RBS committed out to 2017.

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